" if your doing a movie, you pick a big actor who may get paid 100 times more than an unknown actor that may be just as talented and better for the role"
And with that, I think Rob perfectly summed up why 90% of Hollywood movies are crap.
As to the buy out: it's quite simple. Think up all the good things of the buyout you can, add 'em up, and /that/ is the reason(s) Epic bought Reality. Not one singly, but all of 'em combined, of course. They get good talent, they eliminate competitors, they buy done R&D, all in one sweet package.
Is it a good thing? Yes and no, IMO. Good in that UE3 gets better tech...we get games which have been dev'd with a better engine, so we get (potentially) nicer looking games.
Downside is we do get more look-alike games. An engine makes for a certain lockin, unless you re-write the renderer, re-do stock shaders, faff about with the animation engine, spend lots of time on the particle effects etc etc etc...and that all takes lots of time which is also expensive.
Another downside: we'll see less games. Reality engine was cheaper than UE, which meant more studios could afford it. Now it's gone and that means more expensive engines (except Torque and maybe OGRE, but I dunno if that's suitable for AAA titles yet) are all that's left...so less startup studios can afford to buy a good/pretty engine, which means we get less games. Which is a shame.